Seven Tips for Finding Great Real Estate Bargains

The recent influx of foreclosures and distressed properties creates a wonderful opportunity for investors. However, in order to find great deals on real estate, you can’t just have a few coming across your plate every couple days. Instead, use these seven tips to keep the bargains flooding your desk:

1. Connect With Lots of Agents

When properties go into foreclosure, it often ends up as real estate owned (REO) property. Agents who deal with these types of properties are your closest allies. Don’t just work with one. Instead, create a list of local REO agents. Take some time to meet with them and establish a good working relationship. Let them know what you’re looking for – you’ll find they will do a lot of the grunt work for you.

2. Work with Asset Managers

Asset managers can notify you of potential properties before they reach the multiple listing services. Some of these deals are far too good to pass up! And if you’re able to close quickly on these great bargains, the bank will just keep feeding you more and more.

3. Market Yourself to Local Individuals

While they may not be in foreclosure, there are many families experiencing financial difficulty that would love to sell their home. Don’t be afraid to spend some money on a strong marketing plan that targets these distressed homeowners. These individuals are looking to sell for whatever they can get, and you can find some profitable bargains when negotiating one-on-one with the seller.

4. Go to the Court House

There’s very little competition on real estate owned homes that have yet to hit the multiple listing services. While you can’t do a thorough inspection inside the house, you can find some great deals if you purchase on the courthouse steps.

5. Homes Being Sold by Owners

Since the homeowner isn’t paying a real estate agent to sell his home, these types of sales can present great bargaining opportunities. They aren’t listed and don’t get nearly as much activity as those homes on the multiple listing services. At first, the owner may not be ready to meet your low price. However, keep in contact and see if he’s willing to negotiate later on.

6. Search Ads and Respond Promptly

Motivated sellers advertise their homes in as many places as possible. Check the ads in your local newspaper or other publications. You can also find ads on social media websites, online home listing websites and even Craigslist. Check these ads on a daily basis and respond as quickly as possible in order to secure the best deals.

7. Let Friends and Family Know About Your Investments

As with any type of business, word of mouth is one of the most effective means of gaining clients. Let your friends and family know that you’re looking for great deals on real estate. Ask them to let you know when they or their friends are selling homes, especially if the price is low. Investors find many of their best bargains through word of mouth interaction!

A Guide To Understanding Adverse Possession In Real Estate

Adverse Possession is the method of acquiring valid ownership over a piece of land, which is originally owned by someone else. There are a specific set of conditions that need to fall in place for the transfer of ownership to take place. Most of the people are not familiar with the legalities that govern such a transfer of ownership, and that leads many disputes between the original owner and the adverse possessor. Here is what you, as a landowner, need to know about this real estate term:

Legal Requirements For Adverse Possession

Some people are of the opinion that mere possession of the land over a fixed period of time is enough to qualify for this type of possession. This is absolutely untrue. There are other conditions that must be fulfilled, such as uninterrupted and exclusive possession, and open and notorious actual occupancy. The party applying for adverse possession, needs to clearly prove that it has fulfilled all such requirements in the court. Only then will they get a valid title for the land.

Span Of Possession

While the period of possession is not the only criteria for acquiring adverse possession, it is an extremely essential one. In most countries, the minimum number of years of possession is 20 years. If this tenure isn’t met, you cannot claim a stake over the ownership.

Intent Of Hostile Possession

Another essential requirement for this type of possession is the intent behind the possession. The court deems that it will consider the transfer of ownership valid, only when the adverse possessor has a hostile intention to take over the land. However, hostile intent does not require deliberate, willful, unfriendly animosity. In fact, hostile intent does not depend on the mindset of the possessor at all. Rather, an act is considered hostile when it is inconsistent with the rights of the record owner and not subordinate to those rights.

Original Owner’s Acquiescence

The law states that this kind of possession is valid before 20 years of possession, provided that the original owner of the land willingly gives the title to the current owner. This can save both the parties a lot of hassle, but is usually extremely rare as no one wants to give away their property for free.

Adverse possession occurs frequently, and can occur in any real estate related context. There are a lot of technicalities involved in its process. A comprehensive knowledge on the available legal remedies can make the process reasonably easy.

Questions You Need To Answer Before Becoming An Income Apartment Investor

Are you an investor whose primary concern is to earn income, that is income less expenses? Then, here are the things you care mostly about: the rent you are receiving, the body corporate fees, the rates, and any other outgoings. Below are specific details you need to know to make sure you are putting your money into an income-generating apartment.

1. Which type of apartment is the best?

If you are an apartment buyer and want to become a successful income investor, the best types of apartments to invest in are the smaller ones. Ideally, you should buy properties that are below 50 square meters as they give higher returns particularly those that are below 40 square meters.

2. Why smaller apartments are better?

The obvious reason is that smaller ones are easier to rent than larger ones. As an owner, it’s much more difficult to find tenants for a large apartment with many rooms. Naturally, you need to look for a family or a group of individuals who want to live all together or you will have multi-tenancies who prefer home-sharing.

Secondly, apartment size is an important criterion for bank lending. Banks have certain restrictions on apartments that are below 40m2.

Smaller apartments are most often income focused and buyers need to deposit at least 50%.

All these simply mean all your other occupiers are taken out since they cannot afford either the 50% deposit or the fact that no bank would give what they need. Most of the owners of smaller apartments are investors which is perhaps the reason why they are categorized as investor apartments.

3. How do you measure the true value of your chosen apartment?

With the many sales methods used these days, it can be a really challenging task to find the true value of the apartment you’re looking to invest in. The most effective way to accomplish this is through an apartment valuation tool which uses real world sales data and assess the property based on its current condition along with other important factors such as location, size, number of bedrooms, accessibility, amenities, general atmosphere, as well as the distance from city services and other basic landmarks.

Having enough money is not everything to becoming a successful investor. You also need to be an educated and a well-informed buyer. To become such, you need to do research and check out reputable websites that offer various tools, guide, and updates on apartment selling and buying.